…Revenue Chief Dispels Tax Myths
Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, has debunked what he described as “false and misleading claims” circulating on social media regarding the state’s tax regime.
In a detailed media briefing held in their Enugu office, Nnamani clarified the government’s tax policies, reaffirmed its commitment to legality and transparency, and laid out a roadmap for future fiscal administration in the state.
Dispelling Misinformation
Nnamani began by addressing allegations that the state was imposing arbitrary levies, stating unequivocally that “taxes and revenues in Enugu State remain within the limits of the law. We do not impose any levies outside what the law permits.”
He explained that tax administration in the state is guided primarily by the Personal Income Tax Act (as amended), which empowers the ESIRS to collect personal income tax through two principal means: Pay-As-You-Earn (PAYE) for individuals in formal employment, and Direct Assessment for those outside the formal sector.
While compliance is generally seamless among those in formal employment, Nnamani admitted that enforcement mechanisms—including legal action—are sometimes necessary to ensure compliance from others.
Formalising the Informal Sector
One of the most critical challenges, the Chairman noted, has been “transitioning the informal sector—particularly market traders and transport operators—into the formal tax net. Upon assumption of office, it was discovered that 99% of informal sector players were not remitting taxes to the state, largely due to the interference of non-state actors who collected revenues informally.
“In response, the state introduced a consolidated ₦36,000 annual levy for market traders. This fee covers various charges, including environmental sanitation (ESWAMA), Signage fee, LG Stollage, and Business Premises levies.
“Once this amount is paid between January and March, the trader owes nothing else for that year,” Nnamani emphasised. After March 31st, defaulters become subject to enforcement action.
“Street-based vendors, who operate outside formal market structures, are expected to pay ₦30,000 annually, with ESWAMA charges handled separately. Transport operators—Okada riders, Keke drivers, minibuses, tankers, and trucks—operate under a daily ticketing system.”
A Soft-Handed Approach on Penalties
Although the law prescribes penalties of 10% and interest at MPR 27.5%, Nnamani noted that “the state has deliberately not enforced these punitive measures strictly on the informal sector, opting instead for a flat ₦3,000 sanction to encourage ease of doing business.”
Rents and Taxation: No Direct Correlation
On the rising cost of rent, Nnamani dismissed claims linking it to taxation. He described the trend as “a nationwide challenge driven by demand and supply, not state tax policies.” He cited his personal experience with housing inflation dating back to 2015, long before the current administration began enforcing tax laws.
The shift from rental developments to private, gated residences, he said, has reduced housing stock, increasing rental pressure. “If we had more high-rise residential buildings, rent would drop. Government can’t regulate rent prices, but it can build to increase supply,” he noted.
“Plans are already underway, through the Ministry of Housing and Housing Development Authority to construct mass housing and student hostels near institutions like ESUT and IMT, thereby freeing up city accommodation for the general public.
Ensuring Transparency in Tax Administration
To foster trust and eliminate guesswork, Enugu’s tax portal, www.irs.en.gov.ng, now includes a “Tax Calculator” tool that allows residents to compute their obligations based on income, with full transparency. Nnamani encouraged comparisons with similar tools in other states, such as Lagos.
On Claims That Enugu Is Expensive
Responding to reports labelling Enugu as one of the most expensive states in Nigeria, Nnamani acknowledged the perception but attributed it to demand-pushed inflation, particularly in construction materials. He explained that Enugu sources granite from Ebonyi and rods from other states, and that the multiple infrastructural projects ongoing simultaneously—such as 270 Smart Schools, 260 T2 Health Centres, and hospitality infrastructure—have temporarily inflated demand.
“Once these projects are completed, demand for materials will fall and prices will stabilise,” he assured.
Nnamani concluded by noting that Enugu’s tax regime is not an outlier, but consistent with federal laws implemented across all states.
“We’re not here to compete with other states. Our duty is to apply the law fairly and ensure that our people prosper,” he said.
With clarity, candour, and a call for public understanding, Nnamani’s briefing painted a picture of a state working to formalise its revenue base, ease the burden on its citizens, and chart a path to sustainable growth.